host posted on January 09, 2012 14:43
By Marcia Heroux Pounds, Sun Sentinel
Personal bankruptcies in South Florida fell in 2011, the first time in five years. But the decline may be deceiving.
Fewer filings are more a reflection of foreclosures bogged down in the South Florida courts than fewer residents needing bankruptcy protection, say bankruptcy lawyers in the region.
"Foreclosures are a big part of it, and so is under-employment," said Timothy Kingcade, a bankruptcy lawyer in Miami. Bankruptcy "is a big expenditure if you're making $10 an hour."
Filing for personal bankruptcy in South Florida costs $2,000 or more, including lawyer's fees, court costs, and mandatory credit counseling, Kingcade said.
Carmen Landa, 51, of Pembroke Pines, is battling back both from a job loss and an ill-timed real estate investment – two issues facing many in South Florida. After losing her $60,000-a-year bank job in 2010, Landa has only been able to find a part-time job working at a retail store for $8.50 an hour.